Jiankun to sell China assets to raise funds for projects at home

KUALA LUMPUR: Jiankun International Bhd is looking to dispose of some of its assets in China to fund its developments at home.

The group’s executive director, Datuk Donald Lim, said the board is in talks with several buyers. “We don’t have much land at the moment. But we have assets in China, we have some properties there. We intend to dispose of some but we are looking at the price. We will use the money to purchase more land or do joint ventures,” he told reporters after the company’s extraordinary general meeting yesterday.  As at Dec 31, 2014, Jiankun’s properties comprised 14 shops in two buildings in China with a net book value of RM22.21 million.

At the EGM, shareholders approved the acquisition of RM22.5 million worth of freehold land in the Ulu Langat district, which is for landed residential properties.

Lim said that 30% of the land cost would be from internally-generated funds, while bank loans would make up the rest.

He added that the tracts, with a combined area of 5.8ha, would be used for the development of 84 three-storey terraced houses with a gross development value of RM71 million. The units would be priced between RM700,000 and RM800,000 each.

“We intend to launch the development in the fourth quarter this year, and to complete the project in 18 months," Lim said.

He said that the group also plans to develop a condominium in the Klang Valley.

This article first appeared in The Edge Financial Daily, on July 15, 2015.